China Last Night powered by KraneShares is a daily note produced by KraneShares research team led by Chief Investment Officer Brendan Ahern. The note covers top news and events that moved China’s capital markets last night while you were probably sleeping.
What you will receive every day
Daily color on what drove China’s equity, fixed income, and currency markets' performance last night
Aggregated local broker insights
Daily analysis of important policy, trade, public company news / announcements
Sector level performance analysis across Mainland, Hong Kong, and US stock exchanges
Tencent’s AI Assistant Reaches 32 Million Users & Paves Way For Potential Full-Scale Agent
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Key News
Asian equities were mostly lower overnight as anxiety over the AI supply chain trade spread across the region. India and Japan outperformed, managing gains, while Mainland China's STAR (Science & Technology) Market and Indonesia underperformed.
Alphabet's results weighed on Asian stocks overnight after the US hyperscaler missed estimates. There was a significant value bias in both Mainland China and Hong Kong, as investors rotated into defensive sectors like financials and energy. Hong Kong outperformed Mainland China's Shenzhen and STAR Markets, owing to its more consumer-oriented and less technology-focused tilt. However, the Hang Seng Tech Index was sharply lower and Shanghai, which is more-broad based than Shenzhen, outperformed, though still closed slightly lower. Mainland investors sold a net -$429 million worth of Hong Kong-listed stocks and ETFs overnight.
BYD announced a 28.1% increase in net profit in the third quarter. Nonetheless, its stock closed lower by -2.55% overnight in Hong Kong.
Tencent's investment conference is currently taking place in China. Multiple announcements could come out of this event for Tencent. The WeChat owner and payments processor said that its productivity tool called "WorkBuddy", an AI assistant that combines messaging tools and office software with AI agents has garnered 32 million monthly paying users. We believe the company could announce a full-scale agent similar to Meta's Muse in the coming months. The company's stock, unfortunately, was not supported by the conference's optimism, and closed lower by -2.60%.
We have been saying for some time now that Tencent and Alibaba should receive more credit from markets as bona fide AI hyperscalers. Unfortunately, today, that burgeoning recognition from global investors meant that they were both caught up in the sell off of AI-related stocks. Alibaba did open a new data center project in the Netherlands overnight, betting on increasing European demand.
China's Ministry of Commerce (MoC) held a meeting to review progress within the consumer goods trade-in program and discuss other options for stimulating consumption. The MoC noted that the program is estimated to have generated more than RMB 2 trillion worth of sales of consumer goods so far this year.
Last Night's Performance
India shines as Asia slips broadly
5 of 17 markets were up; India was the standout gainer.
+1.2%
India (best)
-4.3%
STAR Board (worst)
-429
Southbound Connect (US$ mn)
Market
Change
1-Day
India
SENSEX Index
+1.2%
Japan
NKY Index
+1.1%
Pakistan
KSE100 Index
+0.9%
Philippines
PCOMP Index
+0.9%
Australia
AS51 Index
+0.5%
Singapore
STI Index
0.0%
Malaysia
FBMKLCI Index
-0.2%
China (Hong Kong)
HSI Index
-0.6%
Vietnam
VNINDEX Index
-0.6%
China (Shanghai)
SHCOMP Index
-0.8%
South Korea
KOSPI Index
-1.2%
Taiwan
TWSE Index
-1.4%
Thailand
SET Index
-1.4%
Hang Seng Tech
HSTECH Index
-2.8%
China (Shenzhen)
SZCOMP Index
-2.8%
Indonesia
JCI Index
-3.5%
China (STAR Board)
STAR50 Index
-4.3%
Hong Kong and Mainland China Liquidity (1-Day Change)
Hong Kong Turnover
HKTurn Index
+4.4%
Hong Kong Short Sale Turnover
HKSST Index
+18.8%
Short Turnover as % of HK Turnover
19.70%
Southbound Connect Net Buy/Sell (US$ mn)
-429
Mainland Turnover
.CHTURN Index
-4.2%
Value outperforms in both Hong Kong and Mainland China as growth lags
25 / 70
HK Advancing / Declining
133 / 160
Mainland Advancing / Declining
Indicator
Hong Kong
Mainland China
Volume % of 1-Year Average
74%
66%
Advancing / Declining
25 (Hang Seng) / 70 (Hang Seng)
133 (CSI 300) / 160 (CSI 300)
Outperforming Factors
Value
Value
Underperforming Factors
Growth
Growth
Top Sectors
FinancialsEnergyUtilities
EnergyConsumer StaplesUtilities
Bottom Sectors
Information TechnologyConsumer DiscretionaryMaterials
Information TechnologyMaterialsIndustrials
Top Subsectors
Petroleum & PetrochemicalsBanksCoal
CoalBanksOil & Gas
Bottom Subsectors
Technology HardwareSemiconductorsMachinery
Communication EquipmentElectronic ComponentsSemiconductors
Southbound Connect Buys
Ping An, Z.AI, Genscript Bio
—
Southbound Connect Sells
YOFC, Brainaurora, 160 Health
—
Hong Kong and Mainland China trade broadly lower
-0.94%
Hong Kong listed (152)
-0.42%
Mainland listed (400)
Sector
# Stocks
Change
Avg. 1-Day
Hong Kong Listed · 152 stocks
-0.94%
Financials
24
+1.59%
Energy
7
+1.45%
Utilities
10
+1.24%
Health Care
15
-0.05%
Consumer Staples
12
-0.78%
Real Estate
6
-1.49%
Industrials
16
-1.55%
Communication Services
7
-2.50%
Materials
14
-2.52%
Consumer Discretionary
27
-2.61%
Information Technology
14
-3.15%
Mainland China Listed · 400 stocks
-0.42%
Energy
11
+1.95%
Consumer Staples
16
+1.76%
Financials
60
+1.03%
Health Care
26
+0.42%
Consumer Discretionary
21
-0.25%
Communication Services
9
-0.27%
Industrials
62
-0.95%
Materials
69
-1.61%
Information Technology
126
-5.83%
US & Hong Kong Dually Listed
0 / 18
Up / Down (1 flat)
0.0%
Autohome (best)
-14.0%
New Oriental (EDU) (worst)
Company
Change
1-Day
Autohome
2518 HK Equity
0.0%
Yum China
9987 HK Equity
-0.6%
Zhihu
2390 HK Equity
-0.8%
Nio
9866 HK Equity
-0.9%
Weibo
9898 HK Equity
-1.3%
JD.com
9618 HK Equity
-1.5%
NetEase
9999 HK Equity
-2.1%
Baidu
9888 HK Equity
-2.1%
Baozun
9991 HK Equity
-2.2%
Li Auto
2015 HK Equity
-2.5%
Tencent
700 HK Equity
-2.6%
Tencent Music Ent.
1698 HK Equity
-2.6%
Xpeng
9868 HK Equity
-2.7%
KE Holdings
2423 HK Equity
-2.7%
Alibaba
9988 HK Equity
-2.8%
Meituan
3690 HK Equity
-2.8%
Bilibili
9626 HK Equity
-3.1%
Trip.com
9961 HK Equity
-3.2%
New Oriental (EDU)
9901 HK Equity
-14.0%
GenScript and Ping An gain while Yangtze Optical Fibre falls 9.3% among Hong Kong's most-traded
Value Traded Rank · Company
Change
1-Day
1Tencent Holdings
-2.6%
2Alibaba Group
-2.8%
3SMIC
-5.9%
4China Construction Bank
+2.1%
5Ping An Insurance
+2.6%
6Lenovo Group
-6.9%
7Z AI
-6.9%
8Yangtze Optical Fibre
-9.3%
9Xiaomi Corp
+0.2%
10GenScript Biotech
+2.7%
Suzhou TFC Optical falls 19.8% as optical and chip names lead Mainland's most-traded lower
Value Traded Rank · Company
Change
1-Day
1Zhongji Innolight
-8.5%
2Eoptolink Technology
-11.1%
3Suzhou TFC Optical
-19.8%
4CXMT
-3.4%
5GigaDevice Semi
-4.8%
6CATL
0.0%
7Cambricon Technologies
-4.7%
8Suzhou Dongshan Precision
-10.0%
9Ingenic Semiconductor
-0.3%
10Hengtong Optic-Electric
-8.0%
Last Night's Exchange Rates, Prices, & Yields
CNY per USD 6.66 versus 6.67 yesterday
CNY per EUR 7.41 versus 7.44 yesterday
Yield on 10-Year Government Bond 1.62% versus 1.63% yesterday
Yield on 10-Year China Development Bank Bond 1.66% versus 1.67% yesterday
Copper Price -0.71%
Steel Price -0.52%
Featured Tweets:
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That’s the price gap between some China-based LLMs and leading U.S. models.
For coding assistants, customer service, enterprise search and internal automation, the
most expensive model may not be necessary for every workload.
It raises a simple question: do businesses need a Ferrari for every trip to the grocery store?
China’s LLM providers are offering open-weight models that can be customized, fine-tuned
internally and run on a company’s own infrastructure.
We caught @ahern_brendan before he headed to @CNBC to get a quick preview of what he’ll be discussing ahead of this week’s Trump-Xi meeting.
Here’s what’s on our CIO’s radar 👇 https://t.co/yxIhY4QBVv
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